THE SAGA OF SUNNY OAKS
Sunny Oaks MHP is a beautiful, 65-space, 55+ manufactured home park in Los Osos, California (about halfway between San Luis Obispo and Morro Bay).
The Saga of Sunny Oaks began 20 or so years ago when the park was purchased by a 501c3 nonprofit corporation (the ‘Owner’). At first, the residents were excited and entered into an agreement with the Owner to facilitate the purchase. Over time, things changed. For multiple reasons, the residents became dissatisfied with the Owner.
When the Owner breached their agreement, the resident group sued, and in 2020 negotiated a new agreement that gave them the right to purchase the park. There were requirements, primarily that the resident group had to become a 501c3 nonprofit. There was a purchase deadline of April 30, 2026.
But if the group met the requirements, they could purchase the park for the amount of the outstanding mortgage debt on the park real property, plus $1.
The group voted and decided to buy the park. They contacted attorney Dave Loop and financial consultant Deane Sargent, and started down the road to park ownership. It took a while to get organized and even longer to obtain the IRS 501c3 designation. But they did it.
Purchase contract negotiations with the Owner dragged on through late 2025 into early 2026.
But the resident group leaders, their Lender (Capital One Multifamily Finance), and their consultants pushed on through.
BOTTOM LINE
The resident purchase of Sunny Oaks MHP successfully CLOSED on April 30, 2026 (yes – the deadline date). The residents’ nonprofit corporation now owns the park.
The economics of this purchase are remarkable. The residents’ nonprofit purchased the park, now worth about $7.8 million, for about $3 million, and have funds on hand for operations, reserves, and contingencies. The membership price for each resident household was $100.
Deane Sargent (PMC Financial Services; pmcfinancialservices.com; deane.f.sargent@gmail.com; 415-271-3919) is pleased to have acted as the financial consultant to the resident group.
Deane Sargent and PMC Financial Services have been helping mobile home park resident groups and cooperatives to organize and find financing to buy their parks for over 20 years.